Does City Publications require franchisees to maintain business interruption insurance?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
13,271.
Insurance
You must procure, at your sole expense and maintain in full force and effect during the term of the Franchise Agreement, the following insurance naming us as additional insured and/or loss payee, in addition to any other insurance that may be required by applicable law, any lender or landlord. In addition, each insurance policy shall contain a waiver of all subrogation rights against us and our successors and assigns.
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- Comprehensive general public liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Franchised Business, or your conduct of business pursuant to the Franchise Agreement, providing minimum liability coverage for claims, as specified by us from time to time; currently the minimum is One Million Dollars ($1,000,000.00).
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- "All Risk" coverage insurance on all contents including inventory, furniture, fixtures, equipment, supplies and other property used in the operation of the Franchised Business for full "replacement cost" coverage.
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- Workers' Compensation that complies with the statutory requirements of the state in which the Franchised Business is located and employer liability coverage with a One Hundred Thousand Dollar ($100,000.00) minimum limit or, if greater, the statutory minimum limit if required by state law.
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- Automobile Liability Insurance for owned, hired and non-owned vehicles with a combined single limit of at least One Million Dollars ($1,000,000.00).
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- General property damage insurance, including fire and extended coverage, vandalism and malicious mischief insurance.
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- Such insurance as necessary to provide coverage under the indemnity provisions set forth in Section 22.B. of the Franchise Agreement.
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- Such trucking, shipping, freight or F.O.B. insurance coverage as is necessary to provide coverage for any loss or damage to direct mail advertisement pieces in transit. We and our Affiliates are not liable for losses resulting from the damage to or loss of materials or services provided in excess of the replacement costs of the materials or services.
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- Business interruption insurance in amounts and with t
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–18)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, franchisees are required to maintain business interruption insurance. The specific amounts and terms of this insurance must be acceptable to City Publications. This requirement is part of a broader set of insurance obligations that City Publications imposes on its franchisees to protect both the franchisee's business and City Publications's interests.
In addition to business interruption insurance, City Publications mandates several other types of insurance coverage. These include comprehensive general public liability insurance with a minimum coverage of $1,000,000.00, "All Risk" coverage for the full replacement cost of contents, workers' compensation insurance, automobile liability insurance with a combined single limit of at least $1,000,000.00, and general property damage insurance. Franchisees must also secure insurance to cover indemnity provisions in the Franchise Agreement and any loss or damage to direct mail advertisement pieces in transit.
The requirement to carry business interruption insurance is a fairly standard practice in franchising. It protects the franchisee from income loss due to unforeseen circumstances that disrupt business operations, such as natural disasters or other unexpected events. By requiring this coverage, City Publications aims to ensure that franchisees can recover financially and continue operating their businesses even after facing significant disruptions. The franchisee is responsible for the expense of all required insurance coverage.
Prospective City Publications franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and discuss these requirements with an insurance professional to ensure they obtain adequate coverage that meets City Publications's standards. Understanding the costs and terms associated with these insurance policies is crucial for budgeting and financial planning as a franchisee.